Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Estimating Economic Service Life of Assets by Using National Wealth Statistic

국부 통계조사자료를 이용한 자산별 경제적 감가상각추정에 대한 연구

  • Cho, Jin-Hyung (Dept. of Industrial & Systems Engineering, Kumoh National Institute of Technology) ;
  • Oh, Hyun-Seung (Dept. of Industrial & Management Engineering, Hannam University) ;
  • Lee, Sae-Jae (Dept. of Industrial & Systems Engineering, Kumoh National Institute of Technology) ;
  • Suh, Jung-Yul (Dept. of Industrial & Systems Engineering, Kumoh National Institute of Technology)
  • 조진형 (국립금오공과대학교 산업시스템공학과) ;
  • 오현승 (한남대학교 산업경영공학과) ;
  • 이세재 (국립금오공과대학교 산업시스템공학과) ;
  • 서정열 (국립금오공과대학교 산업시스템공학과)
  • Published : 2007.12.31
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Abstract

The purpose of computing economic depreciation value is to find valuation of assets closely in line with market prices. The valuation of industrial assets are called Engineering Valuation. The two representative techniques for such valuation are Hulten-Wykoff Method, which estimates real value using regression equations, and T-factor Method devised at Iowa State University. The two are all empirical methods for computing service life (duration period). In this paper, we derived the service life by empirical methods using national wealth statistics, and also by more conventional methods such as original group method and retirement method. The results from each method are compared with one another. We also computed economic service life from these results. In S. Korea where amount of asset value statistics is still insufficient, the most effective method for empirically computing economic service life turns out to be the one using national wealth statistics. In addition, we also present economic relationship between depreciation value computed by using Hulten-Wykoff Method and depreciation value computed by using T-factor Method.

Keywords

References

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